Change Manager / Add Direct Report - Employee does not appear

Hello - We are trying to use the Change Manager function to add Direct Reports.

My Client Groups < Employment < Change Manager

When we enter employee name under "search for people to add as reports" the employee name does not appear. The employee appears to be set up correctly and we can search for other employees.

Is there a process we are missing to ensure all employees appear in this section ??

Thank you in advance for any feedback.